CATCH-UP GROWTH FOLLOWED BY STAGNATION: MEXICO, 1950-2010

TIMOTHY J KEHOE, FELIFE MEZA
2011 Latin american journal of economics  
ABSTRACT___________________________________________________________________ In 1950 Mexico entered an economic takeoff and grew rapidly for more than 30 years. Growth stopped during the crises of 1982-1995, despite major reforms, including liberalization of foreign trade and investment. Since then growth has been modest. We analyze the economic history of Mexico 1877-2010. We conclude that the growth 1950-1981 was driven by urbanization, industrialization, and education and that Mexico would
more » ... hat Mexico would have grown even more rapidly if trade and investment had been liberalized sooner. If Mexico is to resume rapid growth -so that it can approach U.S. levels of income -it needs further reforms. JEL classification: N16, O11, O54,
doi:10.4067/s0719-04332011000200006 fatcat:higuzsqvjfh2xiim35s2ccipku